Cafe in Worcester

A cosy cafe in the heart of Worcester underwent analysis by our team, uncovering substantial unclaimed Capital Allowances, providing tax relief for the property owner.

Capital Allowance claim for a charming cafe in Worcester.

The Property

In 2023, a passionate entrepreneur engaged HMA Tax to evaluate a delightful cafe in Worcester, acquired for Β£340,000. The cafe had undergone enhancements to create a welcoming atmosphere, and while the owner’s accountant had initiated some claims, uncertainties persisted about the full utilisation of available Capital Allowances.

Annual Investment Allowances (AIAs):

We ensured that the cafe owner harnessed the potential of Annual Investment Allowances (AIAs). This strategic measure allowed the owner to significantly reduce their tax liability, providing more resources to enhance the cafe’s ambiance and offerings.

Fit Outs & Refurbishments:

The cafe’s enhancements presented a golden opportunity to capitalise on Capital Allowances. By claiming allowances on the investment in plant and machinery, the owner benefited from substantial tax relief. Our team at HMA Tax examined available allowances, incorporating AIAs, Super-Deduction, WDAs, and SBAs to optimise the owner’s tax savings.

Full Expensing:

Our expertise guided the cafe owner through the realm of Full Expensing. This 100% first-year allowance allowed them to deduct 100% of qualifying expenditure from taxable profits in the year of expense. Our proficient navigation ensured the client capitalised on Full Expensing, significantly reducing their tax burden.

Our Approach

Through our method of identifying Capital Allowances for the cafe owner, our team reviewed the renovation expenses. This led to the identification of Β£108,800 in unclaimed Capital Allowances, representing 32% of the property’s purchase price.

Leveraging our knowledge of Capital Allowances, we presented a detailed report outlining eligible assets and their associated values for potential claims. Collaborating closely with the property owner’s accountants, we ensured the tax savings were maximised through seamless liaison with HMRC.

Thanks to the specialised expertise of HMA Tax, the cafe owner achieved substantial tax savings by claiming Β£108,800 in unclaimed allowances. The resultant tax relief amounted to an impressive Β£21,760.